Women and Entrepreneurship

Shri Mahila Griha Udyog Lijjat Papad (SMGULP) Contd...

Quality was also emphasized and supervisors constantly checked for quality and weight against set standards. SMGULP was based on sound, commercial principles. Since the beginning, all the members were aware of the importance of running the institution as a business enterprise, keeping a constant vigil on every aspect of its working, and maintaining accounts properly. The main aim of SMGULP was to help members earn an honest income through legitimate means. It provided self-employment opportunities to women and helped inculcate in them a measure of self-confidence and self-reliance. Business was also done ethically.

Care was taken to see that the products were priced reasonably, and whenever the cost of raw materials fell, the prices were also revised downwards. These revised prices were advertised in newspapers to ensure that the distributors did not overcharge.

Labor charges worked out to 20-25 percent of the consumer price, raw materials consumed 55-60 percent, sales and other administrative expenses accounted for the remaining 20 percent. This principle was followed for all its products, be it masalas or synthetic detergents. Products were marketed on an area wise basis. Each branch was individually responsible for marketing its products in the area allotted to it. SMGULP's wide network of dealers and the goodwill it enjoyed made the marketing of products easy.

No supplier was asked for credit and none was extended. The papads, produced everyday, were taken to SMGULP's depots. The distributors and exporters picked up their respective stock of products daily against immediate payment. To ensure consistent quality, the head office supplied the most important raw materials to all its branches.

Apart from supplying the raw materials, the head office did not involve itself with the different branches. SMGULP's products were advertised in print (vernacular newspapers) and electronic media. The cooperative also sponsored some TV programs and gave gifts to winners of certain shows.

The cost of advertising was borne by all the branches and divisions of SMGULP through an ingenious method. The money for advertisements was spent by the Polypropylene Division, which recovered the same by increasing the price of the bags that it supplied to all the branches and divisions of SMGULP throughout India.

Thus all of them shared the cost of advertisements in an equitable manner, according to their individual production capacity. SMGULP had a managing committee (which had the highest decision-making powers) consisting of 21 members, a president, a vice president, two secretaries and two treasurers. They were chosen by the sisters (from among the member-sisters) once every three years.

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Case Details

Case Code : LDEN013
Themes: Corporate Social Responsibility, Woman Entrepreneurs
Case Length : 13 Pages
Period : -
Organization : Mahila Griha Udyog, Balaji Telefilms Limited, Biocon
Pub Date : 2003
Teaching Note : Available
Countries : India
Industry : Varied

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